Ambarella Stock Piotroski F Score

AMBA Stock  USD 50.77  0.50  0.98%   
This module uses fundamental data of Ambarella to approximate its Piotroski F score. Ambarella F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Ambarella. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Ambarella financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out Ambarella Altman Z Score, Ambarella Correlation, Ambarella Valuation, as well as analyze Ambarella Alpha and Beta and Ambarella Hype Analysis.
For information on how to trade Ambarella Stock refer to our How to Trade Ambarella Stock guide.
  
At present, Ambarella's Short Term Debt is projected to decrease significantly based on the last few years of reporting. The current year's Short and Long Term Debt Total is expected to grow to about 7.4 M, whereas Net Debt is forecasted to decline to (146.6 M). At present, Ambarella's Price Book Value Ratio is projected to increase slightly based on the last few years of reporting. The current year's Days Of Payables Outstanding is expected to grow to 126.19, whereas Price Earnings Ratio is forecasted to decline to (12.99).
At this time, it appears that Ambarella's Piotroski F Score is Strong. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
7.0
Piotroski F Score - Strong
Current Return On Assets

Negative

Focus
Change in Return on Assets

Increased

Focus
Cash Flow Return on Assets

Positive

Focus
Current Quality of Earnings (accrual)

Improving

Focus
Asset Turnover Growth

Decrease

Focus
Current Ratio Change

Increase

Focus
Long Term Debt Over Assets Change

N/A

Focus
Change In Outstending Shares

Decrease

Focus
Change in Gross Margin

Increase

Focus

Ambarella Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Ambarella is to make sure Ambarella is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Ambarella's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Ambarella's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Asset Turnover0.330.3444
Sufficiently Down
Slightly volatile
Gross Profit Margin0.690.6178
Moderately Up
Slightly volatile
Total Current Liabilities54.7 M83 M
Way Down
Slightly volatile
Non Current Liabilities Total15 M14.8 M
Fairly Up
Pretty Stable
Total Assets429.9 M657.7 M
Way Down
Slightly volatile
Total Current Assets316 M280.2 M
Moderately Up
Slightly volatile
Total Cash From Operating Activities50.1 M50.7 M
Fairly Down
Pretty Stable

Ambarella F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Ambarella's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Ambarella in a much-optimized way.

About Ambarella Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Price Book Value Ratio

3.93

At present, Ambarella's Price Book Value Ratio is projected to increase slightly based on the last few years of reporting.

About Ambarella Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ambarella's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ambarella using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ambarella based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Ambarella, Inc. develops semiconductor solutions for video that enable high-definition and ultra HD compression, image processing, and deep neural network processing worldwide. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California. Ambarella operates under Semiconductor Equipment Materials classification in the United States and is traded on NASDAQ Exchange. It employs 899 people.

Pair Trading with Ambarella

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ambarella position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ambarella will appreciate offsetting losses from the drop in the long position's value.

Moving together with Ambarella Stock

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The ability to find closely correlated positions to Ambarella could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ambarella when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ambarella - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ambarella to buy it.
The correlation of Ambarella is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ambarella moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ambarella moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ambarella can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Ambarella offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ambarella's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ambarella Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ambarella Stock:
Check out Ambarella Altman Z Score, Ambarella Correlation, Ambarella Valuation, as well as analyze Ambarella Alpha and Beta and Ambarella Hype Analysis.
For information on how to trade Ambarella Stock refer to our How to Trade Ambarella Stock guide.
Note that the Ambarella information on this page should be used as a complementary analysis to other Ambarella's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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Is Ambarella's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ambarella. If investors know Ambarella will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ambarella listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(4.25)
Revenue Per Share
5.679
Quarterly Revenue Growth
(0.38)
Return On Assets
(0.14)
Return On Equity
(0.29)
The market value of Ambarella is measured differently than its book value, which is the value of Ambarella that is recorded on the company's balance sheet. Investors also form their own opinion of Ambarella's value that differs from its market value or its book value, called intrinsic value, which is Ambarella's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ambarella's market value can be influenced by many factors that don't directly affect Ambarella's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ambarella's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ambarella is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ambarella's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.